If you’re a cloud provider that can offer high-caliber solutions for security and compliance, then cloud users in Europe need you. This is the most important factor organizations on the continent consider when selecting a cloud platform for migrating and modernizing applications, according to our research (IDC’s EMEA Cloud Survey 2023, August 2023, n = 1,610).
This is also borne out in IDC’s MarketScape: European Public Cloud IaaS 2024 Vendor Assessment report that has just been published. Following extensive research, this new study rates Europe’s top infrastructure-as-a-service (IaaS) providers, and those positioned in the uppers ranks were the ones that gained the highest points for a variety of criteria, including security.
What our report highlights is that when compared to other markets, Europe has very different requirements when it comes to choosing and using cloud solutions, with security and compliance emerging as the most coveted attributes that organizations seek when it comes to their cloud migrations.
When evaluating each IaaS provider as part of our MarketScape, the criteria that were given the greatest weight included their strategies and capabilities in security and compliance, as well as digital sovereignty. These are all interlinked, with the latter being the European cloud market’s most distinguishing characteristic.
Indeed, our research reveals reduced risks related to data security and regulations/digital sovereignty is one of the top business outcomes organizations in Europe expect from cloud use. Concerns over data privacy in Europe — especially in the EU — paved the way to the enactment of the General Data Protection Regulation (GDPR) in 2018, but as the continent’s regulatory and legislative landscape continues to develop and evolve, calls for greater data protection and robust cybersecurity have become louder.
All of this is also allied to the EU’s efforts to address issues related to the market dominance of cloud players from outside the region and set more rigorous standards for online services with the goal of creating a more transparent and user-centric digital environment.
While we are seeing increased interest in digital sovereignty — which includes solutions for data sovereignty and sovereign cloud — in other parts of the world, Europe can be regarded as the frontline market here, and many cloud providers are finding they must include sovereign offerings in their portfolios to support customers in this region.
ESG is also high on the agenda for most cloud customers in Europe. While this is a concern for many organizations globally, when asked specifically about sustainability considerations, a combined 79% of the survey respondents in Europe (IDC’s EMEA Cloud Survey 2023) said they are either “moderately,” “very,” or “extremely” important when choosing a cloud solution.
As a result, an IaaS vendor’s ESG and sustainability plans and goals also played a significant role when determining their position in our MarketScape rankings. One observation that emerged here is that there is room for improvement for all providers when it comes to their ESG activities, especially in relation to transparency and their ability to prove the results of any initiatives.
What’s clear in all this is that not only do cloud providers need to cater to Europe’s specific needs, they also need to be able to support the needs of specific industry sectors. IaaS vendors were therefore also assessed on the availability of industry cloud services and the number of industries supported.
Despite cloud computing as we know it today having been around now for 18 years or so, many organizations in Europe are still at the beginning of their migration journeys. When asked to describe their current cloud maturity levels, only 10% of the organizations we polled in Europe (IDC’s EMEA Cloud Survey 2023) selected “optimized” as their response, meaning they have broadly implemented a substantial cloud team that is proactively managed and resourced well. Most users said they are “opportunistic” when it comes to cloud, meaning they are driven by business needs when requested by internal stakeholders, and that their employees have no significant training or certifications.
Of course, these maturity levels vary according to industry sector. For instance, those in the life sciences and telecommunications, media, and entertainment sectors chose “ad hoc” as their top response (i.e., their cloud usage is focused primarily on pilot projects and validation activities driven by the needs of individual projects), while those in the education sector selected “managed” (i.e., cloud is offered across the business and supported by proactive business leadership).
To add to all this, organizations will also be encountering challenges unique to their industry’s needs. These may include regulatory requirements, cost concerns, limited budgets, and/or a lack of skills and know-how around implementing cloud specific to their business activities.
To add to all this, organizations will also have challenges unique to their industry’s needs. Such challenges may include a lack of skills and know-how around implementing cloud specific to their business activities, regulatory requirements, cost concerns, and limited budgets, etc.
The cloud providers that will ultimately succeed in Europe will therefore be the ones who not only score the highest in all the capabilities highlighted above but can also demonstrate the expertise needed to support the disparate needs of these industry users, as well as the disparate needs of Europe and each market within it. One size will not fit all.
To find out more, check out our latest report here: IDC MarketScape: European Public Cloud IaaS 2024 Vendor Assessment